Which of the following is the correct expression for finding the present value of a $1,000 payment one year from today if the interest rate is 6 percent? A)$1,000(1.06) B)$1,000^(1.06) C)$1,000/(1.06) D)None of the above is correct.

Question

Quizplus · Accepted Answer

The present value formula is PV = FV/(1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of years. Using this formula with the given values, we get PV = 1,000/(1 + 0.06)^1 = 943.40. Therefore, the correct expression is C, which gives us the present value.

Which of the Following Is the Correct Expression for Finding